Holding Group Members Accountable For Violating Terms Of Their Agreement
Leading buying and marketing groups, sometimes called group purchasing organizations (GPOs), rely on their distinctive products and high-quality services to build their customer base. If a member of their group does not comply with its purchasing guidelines, pay its vendors promptly, continue to meet its membership criteria or otherwise violates terms of the group membership agreement, these choices adversely affect all members in the GPO.
The best strategy for eliminating a problem member begins when it is brought into the group. The membership criteria should be clearly stated in writing and the membership agreement should be comprehensive and well-written. Even with the proper documentation in place, it is critical to proceed with caution. Factors such as the group’s market share, the availability of other groups and the effect it will have on the member’s ability to stay in business must be taken into account.
Our legal team at Ray Law Firm, PLLC, understands the delicate nature of member expulsions from groups. Our lawyers have years of experience designing GPO membership contracts and working through member expulsion situations, so we are able to analyze these situations and help our clients determine if they have solid grounds to end the membership.
Helping You Make Informed Decisions
From our Chattanooga office, our attorneys design a course of action that helps our clients remove noncompliant members with minimal risk of extensive legal action.
If you determine that a member has disregarded your group’s terms and policies and that it is in the best interest of the group to terminate the membership, the first step is to see if the member will agree to voluntarily leave the group. If so, our attorneys will draw up a termination agreement that will document the separation. Should the member refuse to sign the contract and leave your buying group, we will pursue the appropriate legal action, in or out of court to involuntarily terminate the membership.
Worried About Handling Internal Disputes Effectively? Talk To Us Today.
Schedule a phone or an office appointment with our Tennessee firm. Our attorneys will study the circumstances surrounding your case to determine whether your member’s actions qualify for termination. You can easily contact us online or over the phone at 423-825-9772 .